Frequent flyers have long been demonstrating loyalty towards airline companies. However, these aviation giants are currently retaliating, seemingly expressing disregard or irritation towards their loyal customers.
In the modern world, the choice between budget-friendly travel or earning rewards through loyalty programs is a common dilemma. For the average Joe, jetting off for the cheapest fare or opting for the most convenient route usually wins out. But, for some, the allure of elite airline status is too strong to resist. They're willing to spend more, endure awkward timings, and even connect multiple times to their destination, all just to amass airline loyalty points.
This dance is known as the frequent flyer program, usually a costly one, but it's one that promises rewards in the form of lounge access, seat selection, priority security, and other perks that help make flying in the 21st century less of a nightmare - as long as you're flying enough and spending enough to reach the coveted "elite" tiers of airlines' loyalty programs.
However, it's becoming increasingly challenging to earn real value from these programs. Airlines keep raising their redemption costs, making rewards less valuable, ratcheting up spending requirements, and implementing dynamic pricing - meaning that award flights cost more points than before.
Three Oneworld airlines - British Airways, Iberia, and Qantas - have announced changes to their loyalty schemes this year. Flying with British Airways and Iberia will become harder to accrue status, while spending loyalty points on Qantas will require a higher spend. Ed Bastian, Delta Air Lines' CEO, cited crowded lounges as one reason for their changes, causing quite a stir among their frequent flyers.
So, are loyalty programs worth it anymore? With airlines seemingly disinterested in rewarding the average traveler, are there any programs left that still cater to the little guy?
Loyalty programs have long been a balance of carrot and stick, offering benefits that make flying a nicer experience in exchange for spending more (and often unnecessarily) with the airline. In this game of "irrational behavior," airlines aim to stimulate traits that go against rational thought, as travel experts explain.
For decades, frequent flyers have sought rewards, including upgrades, lounge access, and priority services. The drive to attain higher status tiers often leads people to perform seemingly illogical acts like taking out new credit cards, booking flights they never intended to take, and even flying across the globe without ever leaving the airport.
Loyalty programs aim to provide valuable incentives in industries where there is little differentiation between companies, such as airlines. Airlines can gain a competitive edge by catering to customers' needs, making the decision to switch between airlines a difficult one. A good loyalty program can help airlines gather customer data, allowing them to better understand and serve their customers. In the tight margins of the aviation industry, every little bit can make a difference.
Delta Air Lines' attempt to toughen its program last year attracted criticism and prompted the CEO to admit they "probably went too far." More changes are coming to the Oneworld alliance, with British Airways, Iberia, and Qantas all announcing updates to their programs. Many loyal flyers feel betrayed as the airlines adjust their programs to make it harder for the average traveler to earn status.
With the increasing challenges faced by average travelers to reach elite status and enjoy the perks associated with airline loyalty programs, few can deny the feeling that loyalty is no longer being rewarded. In a bid to differentiate themselves and cater to their business customers, airlines seem to be turning their programs into recognition schemes for their biggest spenders, rather than loyalty schemes.
As airlines tighten the reigns on their programs, suggestions that they no longer care about rewarding the little guy are growing louder. Are there any programs left that still work for the average Joe? With the right strategy and understanding, the answer is yes. However, it's important for frequent flyers to stay informed, be strategic, and remain open to exploring alternatives, including shifting allegiances to airlines with more favorable loyalty programs in alliance with their preferred airline.
- In an effort to maintain their competitive edge, airlines often incorporate gamification elements into their loyalty programs, encouraging customers to spend more through schemes and rewards.
- With airlines continuously adjusting their loyalty schemes, aviation enthusiasts might find it beneficial to explore alternative options within airline alliances, optimizing their travel choices for maximum rewards.
- Despite the challenges faced by average travelers in reaching elite status and enjoying the perks of airline loyalty programs, some airlines still uphold their commitments to rewarding loyal customers with incentives and benefits.
